Golf Industry Case Essay

Decent Essays
Golf Industry 2009 Case Analysis
Michael George
Central Michigan University
MGT 495 Section #2216221

Table of Content
1.Introduction page 1
2.Five Forces of Competition pages 1-4
3.Driving Forces page 4
4.Strategic Map page 5
5.Conclusion page 5
6.Biography page 6

In this case study we look at the golf equipment industry in 2009 and its driving forces that affect the competition amongst its leaders. The companies examined in the study are Callaway Golf, TaylorMade-Adidas Golf, Titleist/Cobra Golf, Ping Golf, and Nike Golf. We will examine the competitive forces being dealt with by these companies, the driving forces that are affecting the industry, and the attractiveness of the industry to these
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-Competitive Forces of Buyers(Gamble 2011, pp45-46) All of the competitors examined in this case have distribution networks for their products that include on course pro shops, off course pro shops, and online golf retailers(Gamble 2011, p 289). As a part of the process, custom fittings and advice are offered to the end users. This tends to make for a very well informed buyer who is a relatively small segment of the overall population. These “core golfers” account for 87% of the industry equipment sales(Gamble 2011, p.285). Sales of golf equipment are predicted to decline 15% to 20% in 2009 due to reductions in discretionary spending(Gamble 2011, p.280). Due to these market conditions it would seem that the buyer pressures being exerted on the marketplace going in to 2009 would be a strong driving force for the manufacturers.
-Competetive Forces of Substitute Products(Gamble 2011, pp.47-48) The primary force exerted by substitute products is in the form of counterfeiting. In 2007 more than $600 billion worth of products were sold worldwide(Gamble 2011, p.286). In the golf industry many of the counterfeits come from Chinese manufacturers who have stolen clubhead forms and copied packaging in an effort to dump these inexpensive nearly exact copies into the
marketplace through Ebay and similar online websites(Gamble 2011, p.287). These forces are being contested by the industry’s
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